Home stay propsal
Proposal For Homestay Owners
In this ultra-competitive environment, homestays need to increase their online visibility. For that, they prefer to use online booking portals to attract millions of visitors and boost their bookings. No doubt, booking portals like Airbnb, Make My Trip, Trivago, etc. are a significant part of the travel industry and they ensure higher occupancy. But it also has some disadvantages.
How booking through portals reduce profitability of homestay owners
1. Increased commission payments
Online booking portals make their money by charging a commission on every booking which can range anywhere from 15 to 30 percent of a booking. The dominant booking portals abuse their power in terms of contractual agreements and commission charges. These portals charge an enormous amount of commission from the homestay owners to list their property at a higher level.
2. Price war
No doubt, there is a clear advantage of long reach, but these portals lead to an immense price war within the homestay industry.
3. Reduced profit margin for homestay owners
Homestay owners have to offer reasonably priced rooms to gain a competitive edge that reduces their profit margin.
2. Loss of customer information
When a customer books through a booking portal, their contact information, and email address may go to the booking portal. So, the homestay owners lose such valuable information about customers and cannot pitch their services to such customers in the future.
5. Loss of complete control
The moment you start using online booking portals, you face limitations around how you can market your business on their site. They impose restrictions on presenting tour descriptions, updating your listings, and so on.
digital marketing strategies helped a luxury homestay achieve an escalating occupancy rate through direct booking
- Establish a high-quality social media presence for the homestay.
- Converting highly engaged traffic into direct bookings.
- To Strengthen relationships with clients and create a database to pitch services in the future
- Increase the amount of quality traffic arriving at the website, improve customer service, and promote consumer loyalty.